Compensation Policy Outline and Example Policy

A compensation policy is a document that outlines how a company pays and rewards its employees for their work. 

It details aspects of compensation such as basic salaries, cost of living adjustments (COLA), merit increases, additional compensation like bonuses and commissions, and non-monetary benefits like health care and retirement plans. 

This is a Microsoft Word Document.
 

What does it solve?
Compensation, DEI

Example
Lana became an employee of ABC Accounting in February. She feels she has been doing an excellent job and requests a raise in July of the same year. However, the compensation policy outlines that all employees are reviewed annually in Q4 and must have been employed with the company for at least six months to be eligible for a raise. Lana’s manager is able to refer to this policy to better clarify expectations for pay increases and explain that employees are treated fairly and equitably through clear guidelines for compensation. 

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